Topic selection, Layout selection and Decision making
- 1. Process Selection- Manufacturing Eng. Uditha Wijayaratne B.Sc. (Eng.) Hons, ACMA (UK), CGMA, ACCA (UK), MBA (PIM-SJP), AMIESL (SL)
- 2. Contents Types of Processes Process Flow Structures Product - Process Matrix Process Flow Design Break-Even Analysis
- 3. Types of Processes • Conversion (Iron to steel) • Fabrication (Cloth to clothes) • Assembly (Parts to components) • Testing (For quality of products)
- 4. Selection of Process How much variety will the process need to be able to handle? How much volume will the process need to be able to handle?
- 5. Process Flow Structures Job shop Production of small batches of a large number of different products, most of which require a different set or sequence of processing steps Tailors shop, Airplane manufactures (Copy center making a single copy of a student term paper)
- 6. Process Flow Structures Batch shop • Some what standardized job shop • Cosmetics manufacturing (Copy center making 10,000 copies of an ad piece for a business)
- 7. Process Flow Structures Assembly Line • Production of discrete parts moving from workstation to workstation at a controlled rate, following a sequence needed to build the product • Manual assembly of toys / appliances (Automobile manufacturer)
- 8. Process Flow Structures Conversion or further processing of undifferentiated materials (Petroleum manufacturer) Continuous Flow
- 9. Product- Process Matrix IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Low Volume, One of a Kind Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standard- ization Commercial Printer Heavy Equipment Automobil e Assembly Sugar Refinery Flexibility (High) Unit Cost (High) Flexibility (Low) Unit Cost (Low) These are the major stages of product and process life cycles
- 10. Process Flow Design 🠶 A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant. 🠶 The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets.
- 12. Assembly Charts
- 13. Process Analysis ◼Process - a set of tasks that transform inputs in to useful outputs ◼A process usually consists of ▪ a set of tasks, ▪ a flow of material and information that connect the set of tasks, and ▪ storage of materials and information.
- 14. Process Flow Chart Material Received from Supplier Inspect Material for Defects Defects found? Return to Supplier for Credit Yes No, Continue…
- 16. Break-Even Analysis 🠶 A standard approach to choosing among alternative processes or equipment. 🠶 Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment. 🠶 Model seeks to determine the point in units produced (and sold) where total revenue and total cost are equal.
- 17. Example 1 🠶 Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break-even with our costs?
- 18. Example 1 🠶 Break-even Demand: = Total fixed costs of process or equip. Unit price to customer – Variable costs =5,000/(25-5) =250 customers
- 19. Example 2 Suppose a manufacturer has identified the following options for obtaining a machined part. It can buy the part at Rs 200 per unit, it can make the part on a numerically controlled semiautomatic lathe at Rs. 75 per unit, or it can make the part on a machining centre at Rs. 15 per unit. There is negligible fixed cost if the item is purchased; a semiautomatic lathe costs Rs. 80,000 and a machining centre costs Rs. 200,000. The selling price of the product is Rs. 300.
- 21. Question Bowl What is the break-even in demand for a new process that costs $25,000 to install, will generate a service product that customers are willing to pay $500 per unit for, and whose labor and material costs for each unit is $100? a. 400 units b. 250 units c. 100 units d. 62.5 units e. None of the above Answer: d. 62.5 units (25,000/(500-100)=62.5)
- 22. Summary 🠶 Types of Processes 🠶 Process Flow Structures 🠶 Product - Process Matrix 🠶 Process Flow Design 🠶 Break-Even Analysis